INPEX Q2 FY2026: Net Profit Up 17.7%, Full-Year Guidance Lifted

Revenue fell 4.6% to ¥1,000,495 million, while net income attributable to owners of the parent rose 17.7% to ¥263,147 million. Operating profit edged up 0.3% to ¥618,713 million, marking a record high. The decline in revenue reflected a 22.8% drop in crude oil sales volumes, but this was partly offset by higher oil prices (average $79.51/barrel, up 8.2%) and a weak yen (average ¥158.37 per dollar, 6.7% weaker). Comprehensive income swung to a positive ¥459,759 million, and equity-method investment profit increased 15.1% to ¥74,958 million, boosting non-operating income. Lower income tax expenses also contributed to the net profit rise.

INPEX revised its full-year forecast, lowering revenue guidance to ¥1,973,000 million but raising net profit projection to ¥510,000 million (previously ¥350,000–450,000 million). The company also announced an interim dividend of ¥56 per share and plans a full-year payout of ¥112, up ¥12 from the prior year.

Domestic Oil & Gas revenue increased 6.4% to ¥112,663 million, but net profit plunged 54.4% to ¥7,881 million as higher costs eroded gains from a 9.7% rise in gas sales volumes.

The Ichthys project, part of International Oil & Gas, delivered strong results with revenue up 17.5% to ¥215,840 million and net profit up 24.5% to ¥173,071 million, reflecting higher crude selling prices and stable production (crude oil: 6,678 thousand barrels, natural gas: 197,716 million cubic feet).

Other International Oil & Gas revenue declined 12.0% to ¥659,200 million on lower sales volumes, but net profit rose 7.8% to ¥77,879 million due to reduced tax expenses.

The Other segment, including renewables and hydrogen, returned to profitability with revenue of ¥12,791 million and profit of ¥2,436 million.

Overall, the Other International segment accounted for about 65.9% of total revenue, followed by Ichthys at 21.6% and Domestic at 11.3%.

Total assets rose ¥651.7 billion from end-FY2025 to ¥8,386.9 billion, driven by increases in oil and gas assets. Liabilities stood at ¥3,035.9 billion, with the equity attributable to owners of the parent ratio at a healthy 60.8%.

Operating cash flow surged ¥125.9 billion to ¥553.8 billion, aided by lower tax payments. Investing cash outflows of ¥424.7 billion, mainly for development and production assets, resulted in positive free cash flow. Financing activities saw a net outflow of ¥91.0 billion, including commercial paper reduction and dividend payments.

Shareholder returns were enhanced: the interim dividend of ¥56 per share and planned full-year dividend of ¥112 represent a ¥12 increase. The company also executed share buybacks worth ¥9,975 million, underscoring its focus on capital efficiency.

INPEX now expects full-year revenue of ¥1,973,000 million (down 1.9% year-on-year), operating profit of ¥1,223,000 million (up 7.7%), and net profit attributable to owners of the parent of **¥510,000 million** (up 29.5%). The upward profit revision is primarily due to robust Ichthys output and a raised oil price assumption. The company lifted its full-year Brent assumption to $81.4/barrel (previously $70.0–83.0) and now assumes an exchange rate of ¥159.2 per dollar (previously ¥154.0–156.0). The revenue downgrade stems from expected lower sales volumes.